Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The draft profit for the year of a sole trader was $108000$ before the following items were considered. 1. The provision for doubtful debts carried forward was $1850$. The provision that should be carried forward is $2250$. 2. Depreciation of non-current assets had been undercharged by $2000$. 3. An accrual of $600$ for repairs had been recorded as a prepayment. What was the correct profit for the year?

  • A$104400$
  • B$105200$
  • C$109000$
  • D$111600$

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